Europe

EU to Introduce EUR 3 Duty on Low-Value E-Commerce Parcels

December 17, 2025

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After announcing the removal of the EUR 150 threshold, the European Commission once again addressed the matter by declaring support for EU countries to introduce a flat EUR 3 customs duty on low-value e-commerce parcels, effective from July 2026, to tackle the growing imbalance between online imports and traditional retail.

Main Reasons and Purpose of Regulatory Changes

Due to the increased number of small parcels entering the EU, existing customs rules have struggled to ensure fair competition and effective oversight. Therefore, the European Commission and the EU countries determined that it is necessary to implement a temporary measure until the EU Customs Data Hub becomes operational in 2028, as part of the broader customs reform.

The solution all stakeholders agreed on was to impose a temporary EUR 3 customs duty per item on low-value parcels sent directly to EU consumers from third countries. Notably, the customs duty is distinct from the separate discussions on a potential EU handling fee for e-commerce parcels, which is intended to offset the rising administrative and supervisory costs faced by customs authorities due to the sheer volume of shipments.

The primary purpose of the newly adopted customs duty is to protect the EU businesses and to remove the current competitive advantage enjoyed by certain e-commerce companies. On the other hand, the broader customs reform seeks to strengthen the EU Customs Union, safeguard EU retailers and workers, and enhance consumer protection by ensuring fairer competition between EU businesses and non-EU online platforms.

Conclusion

With new rules in place and the upcoming reform of customs rules, the EU confirmed its dedication to modernising the management of trade at its external borders and to completing the most far-reaching customs reform since the establishment of the Customs Union in 1968. The decision to introduce EUR 3 customs duties on small parcels entering the EU is a critical step toward ensuring fair competition and effective border control and organization in the modern e-commerce landscape.

Source: European Commission, VATabout

What is the new EUR 3 customs duty proposed by the EU?

The EU has proposed a temporary flat EUR 3 customs duty per item on low-value e-commerce parcels sent directly to EU consumers from third countries.

When will the EUR 3 customs duty on e-commerce parcels apply?

The customs duty is expected to take effect from July 2026 and will apply as a temporary measure.

Why is the EU introducing a customs duty on low-value parcels?

The measure responds to the sharp increase in small parcels entering the EU, which has made it harder for existing customs rules to ensure fair competition and effective oversight.

Is the EUR 3 customs duty a permanent measure?

No, it is intended as a temporary solution until the EU Customs Data Hub becomes operational in 2028 as part of the broader customs reform.

How does this customs duty affect EU businesses and retailers?

The duty aims to protect EU businesses by reducing the competitive advantage currently enjoyed by some non-EU e-commerce platforms selling low-value goods.

Is the EUR 3 customs duty the same as the proposed EU handling fee?

No, the customs duty is separate from discussions on a potential EU handling fee, which would be designed to cover the administrative and supervisory costs faced by customs authorities.